Saturday Papers: SEC opens probe into US banks’ foreclosures - money news

Financial Times

* It is believed that the Securities and Exchange Commission has opened an informal probe  into US banks’ mortgage practices as evidence of alleged mistakes in the foreclosure process emerged.

* Hargreaves Lansdown’s fund supermarket - Vantage - attracted 7,000 clients in the past three months who brought with them net inflows of £550 million; the platform is on course to add an estimated 35,000 new clients this year, according to Canaccord Genuity.

* The US budget deficit narrowed to $1,294 billion, or 8.9% of gross domestic product, in the 2010 fiscal year.

* Some 58 million US retirees and disabled workers will not receive a cost-of-living increase to their social security benefits for the second time since 1975, the Social Security Administration on Friday suggested.

* Portugal’s minority government has presented a tough austerity budget to reassure financial markets that the will meet its ambitious deficit-reduction targets.

* Ten months on from the introduction of one-off “supertax” on bankers’ bonuses, far fewer bankers and traders have left the UK than some tax advisers initially forecast.

* An unexpected loophole could allow high earners to pay more than £100,000 into their pension with tax relief next year, in spite of the Treasury’s attempt to crack down on high earners.

* New figures published on Monday by Moneyfacts.co.uk found that there are 306 mortgages available to buy-to-let landlords, up from 292 last month and 227 a year ago - but property experts have warned that in spite of these changes, raising new finance remains tough.

* Wealthy borrowers are buying second homes in France after mortgage rates fell to the lowest level since the postwar period last month.

* Venture capital trusts are opening their doors to investors again this month, as analysts predict a bumper year for the tax-efficient vehicles.

* Investors holding cash in Isas or Sipps are earning near-zero interest, but switching into money market funds for potentially higher returns means additional risk, warn experts.